GMA Network reports P2.851 billion recurring revenues for Q1 2014

(Quezon City, Philippines – May 5, 2014) – GMA Network, Inc. (GMA) recorded recurring revenues of P2.851 billion in the first quarter of 2014, down 4 percent versus the same period last year, sans the impact of election-related advertisements.

The political ads from last year’s midterm elections boosted the Network’s earnings in 2013. Thus, consolidated revenues during the first quarter of this year dropped 12 percent versus a year ago.

Effective management helped the Network reduce its operating expenses by less than one percent toP2.363 billion in between periods.

The company’s EBITDA (earnings before interest, taxes, depreciation and amortization) decreased by 31 percent to P823 million, while net income settled at P325 million or P276 million lower than 2013.

GMA International, which manages the operations and distribution of the Network’s international channels, and GMA News TV, the country’s number one news channel, posted positive results, while local regional sales proved to be an emerging revenue source.

Despite its performance in the first quarter, the Network’s management remains optimistic in reaching its targets for the year. “We expect better numbers in the next few months as our top advertisers have already committed their placements,” said GMA Chairman and CEO Felipe L. Gozon.

“Moreover, we are confident that our diverse line-up of upcoming shows will help us regain our lead in nationwide ratings and boost our earnings for the coming months,” Gozon added.

Meanwhile, GMA will pay out cash dividends to its shareholders worth P1.312 billion at 27 centavos per share on May 19, 2014.

Since its July 2007 IPO launch, the Network has released P14.239 billion cash dividends, consistently paying out at a high percentage compared to its net income. Each GMA common share has already earned P2.93 or an average of 5 percent per year based on the IPO price of P8.50.

Business Developments

In keeping with its thrust of bringing Filipinos abroad closer to home, GMA International reinforced its broadcast services in Texas and Georgia in the US, as well as in the cities of Canberra, Sydney and Gold Coast in Australia during the quarter. In June, Filipinos based in the states of Alabama and Louisiana will likewise have wider access to GMA Pinoy TV.

It is also better serving the needs of Filipinos in Qatar with the launch of GMA’s international channels GMA Pinoy TV, GMA Life TV and GMA News TV International in a new carrier in May.

On the other hand, GMA Worldwide, Inc., the Network’s global syndication and distribution arm, sold over 1,095 hours of programs and movies for airing in Myanmar, Cambodia, Vietnam, Malaysia, Brunei, Singapore, South Korea and the US in the quarter.

GMA Records kept its winning streak via Julie Anne San Jose’s self-titled album’s 9-time Platinum Record Award from its sales of over 135,700 units from August 15, 2012 to February 28, 2014.

The album of My Husband’s Lover male lead stars Tom Rodriguez and Dennis Trillo dubbed TomDen likewise clinched a Gold Record Award from its sales of over 14,000 units from October 12, 2013 to February 28, 2014.

The Network finished various transmission upgrades in the regions during the quarter as it continues to expand its reach across urban and rural areas. On March 12, GMA commissioned a new relay station in Daet, Camarines Norte and has ongoing transmission projects in Lanao del Norte, Tuguegarao and Butuan.

TV Ratings

Data from the industry’s leading ratings service provider Nielsen TV Audience Measurement showed GMA dominating competition in Urban Luzon and Mega Manila in the first quarter of 2014.

In Urban Luzon, which accounts for 77 percent of the total urban TV households in the country, GMA scored a 35.2 percent average total day household audience share, higher by 3.3 points over ABS-CBN’s 31.9 percent and by 23.8 share points over TV5’s 11.4 percent.

GMA also continued to lead in its bailiwick Mega Manila, scoring an average total day household audience share of 36.3 percent, ahead of ABS-CBN’s 29.2 percent by 7.1 share points, and of TV5’s 12.3 percent by 24 share points. Mega Manila represents 60 percent of the nationwide urban TV household population.

International Awards

2014 is shaping up to be another historic year for GMA as it won its fourth George Foster Peabody Award for its special coverage on typhoon Yolanda. GMA is the only news and public affairs organization in the country to have received this prestigious award for excellence in broadcast journalism.

GMA also brought home seven world medals and four finalist certificates from the 2014 New York Festivals International TV & Film Awards. The Kapuso Network had the most number of awards among Filipino organizations totaling 11.

Furthermore, GMA International garnered four Silver Awards of Distinction at the 20th Communicator Awards, the leading international creative awards program that recognizes creative excellence in marketing and communications. The winning entries include the GMA News TV International Info kit for the Print Category, the Middle East MyHD Campaign for the Integrated Campaign category, the Philippine Independence Day TV Special 2013 for the Video Category, and GMA Pinoy TV’s Home Away from Home for the Video Category.

GMA International has won alongside some of the biggest players in the international television industry such as Verizon, Comcast Spotlight, Warner Bros Digital Media, Hub Television Network, MacLaren McCann and Mercedes Benz USA.